U.S. Silica's operating performance has improved due to increased demand and higher pricing for frac sand

Silica's operating performance has improved due to increased demand and higher pricing for frac sand as a result of the substantial pick up in oil and gas drilling and completion activity amid an increase in oil prices.

Oil prices have risen to an average of $51 per barrel for the first eight months of 2017 from an average of about $43 per barrel in 2016. We also expect utilization of sand per well to increase for the next 12 months.

The stable outlook reflects our view that the frac sand industry is on the path to recovery given increased oil prices and drilling activity. As such, we expect U.S. Silica's credit measures will improve over the next 12 months; specifically, we expect debt to EBITDA in the 4x-4.5x range and FFO to debt in the 15%-20% range.